Fuel blend change could benefit E15

Monday, July 29, 2013 1:58 PM

A pending change in motor fuels carried in pipelines to Iowa could boost the appeal of lower cost ethanol blends, according to the Iowa Renewable Fuels Association. Beginning in mid-September, regular 87-octane gasoline will no longer be shipped to the state, meaning the fuel will need to be blended either with ethanol or 91-octane premium gasoline to reach the minimum 87-octane level required in Iowa. The association released an analysis that estimates the net wholesale price difference between the E10 blend and non-ethanol unleaded could range from 34 cents to 57 cents per gallon. "Each retailer will need to decide for themselves and the right answer may not be the same for all, but we're confident that E15 will look very attractive once the marketplace implications of the oil refiners' pipeline changes are better understood," said Monte Shaw, the IRFA's executive director.